Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the Board of Education and the District Administrator continue to monitor the transactions and the financial records of the District. We also encourage the District to continue to identify cost effective opportunities to improve the design of the internal control structure. Response: The Business Office has been working on adding more oversight to accounting functions that occur in the District by training employees in different areas and by following a schedule of monthly and annual informational reporting and approval. The Business Manager reports to the Board of Education each month on total revenues and expenditures for the year in comparison to trends from the previous year. The Board also receives detailed reports each month to review and approve all checks that were processed in the month prior. Beyond that, all payment requests in the District require two administrators to sign off on them to ensure more than one person reviews and approves the request. Payroll sends cash reconciliation statements to the Business Manager each month for review and approval and the Bookkeeper sends check summary reports to the Business Manager for approval each time a batch of checks is processed. Each member of our Business Office staff is trained in another area of the Business Office (e.g. Business Manager can process payroll, Payroll Specialist can cut checks, and our Bookkeeper can submit financial reports to DPI). However, due to the limited number of staff in our District, some accounting functions in the Business Office do not have as much segregation as recommended by our auditors. In the future, we will continue to try to segregate more duties to help alleviate the financial risk in the District.
Finding #2022-002- Material Adjustments (Prior Year Finding #2021-002) Condition: Johnson Block and Company, Inc. proposed multiple adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to report properly. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the Board of Education and the District Administrator continue to monitor the transactions and the financial records of the District. We also encourage the District to continue to identify cost effective opportunities to improve the design of the internal control structure. Response: The Business Office has been working on adding more oversight to accounting functions that occur in the District by training employees in different areas and by following a schedule of monthly and annual informational reporting and approval. The Business Manager reports to the Board of Education each month on total revenues and expenditures for the year in comparison to trends from the previous year. The Board also receives detailed reports each month to review and approve all checks that were processed in the month prior. Beyond that, all payment requests in the District require two administrators to sign off on them to ensure more than one person reviews and approves the request. Payroll sends cash reconciliation statements to the Business Manager each month for review and approval and the Bookkeeper sends check summary reports to the Business Manager for approval each time a batch of checks is processed. Each member of our Business Office staff is trained in another area of the Business Office (e.g. Business Manager can process payroll, Payroll Specialist can cut checks, and our Bookkeeper can submit financial reports to DPI). However, due to the limited number of staff in our District, some accounting functions in the Business Office do not have as much segregation as recommended by our auditors. In the future, we will continue to try to segregate more duties to help alleviate the financial risk in the District.
Finding #2022-002- Material Adjustments (Prior Year Finding #2021-002) Condition: Johnson Block and Company, Inc. proposed multiple adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to report properly. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the Board of Education and the District Administrator continue to monitor the transactions and the financial records of the District. We also encourage the District to continue to identify cost effective opportunities to improve the design of the internal control structure. Response: The Business Office has been working on adding more oversight to accounting functions that occur in the District by training employees in different areas and by following a schedule of monthly and annual informational reporting and approval. The Business Manager reports to the Board of Education each month on total revenues and expenditures for the year in comparison to trends from the previous year. The Board also receives detailed reports each month to review and approve all checks that were processed in the month prior. Beyond that, all payment requests in the District require two administrators to sign off on them to ensure more than one person reviews and approves the request. Payroll sends cash reconciliation statements to the Business Manager each month for review and approval and the Bookkeeper sends check summary reports to the Business Manager for approval each time a batch of checks is processed. Each member of our Business Office staff is trained in another area of the Business Office (e.g. Business Manager can process payroll, Payroll Specialist can cut checks, and our Bookkeeper can submit financial reports to DPI). However, due to the limited number of staff in our District, some accounting functions in the Business Office do not have as much segregation as recommended by our auditors. In the future, we will continue to try to segregate more duties to help alleviate the financial risk in the District.
Finding #2022-002- Material Adjustments (Prior Year Finding #2021-002) Condition: Johnson Block and Company, Inc. proposed multiple adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to report properly. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the Board of Education and the District Administrator continue to monitor the transactions and the financial records of the District. We also encourage the District to continue to identify cost effective opportunities to improve the design of the internal control structure. Response: The Business Office has been working on adding more oversight to accounting functions that occur in the District by training employees in different areas and by following a schedule of monthly and annual informational reporting and approval. The Business Manager reports to the Board of Education each month on total revenues and expenditures for the year in comparison to trends from the previous year. The Board also receives detailed reports each month to review and approve all checks that were processed in the month prior. Beyond that, all payment requests in the District require two administrators to sign off on them to ensure more than one person reviews and approves the request. Payroll sends cash reconciliation statements to the Business Manager each month for review and approval and the Bookkeeper sends check summary reports to the Business Manager for approval each time a batch of checks is processed. Each member of our Business Office staff is trained in another area of the Business Office (e.g. Business Manager can process payroll, Payroll Specialist can cut checks, and our Bookkeeper can submit financial reports to DPI). However, due to the limited number of staff in our District, some accounting functions in the Business Office do not have as much segregation as recommended by our auditors. In the future, we will continue to try to segregate more duties to help alleviate the financial risk in the District.
Finding #2022-003 ? Parental consent to bill Medicaid not present in student file Medical Assistance Program (Medicaid; Title XIX) (93.778) Federal Grantor ? U.S. Department of Health and Human Services Pass-through Entity ? Wisconsin Department of Health Services Condition: The Medicaid program requires parental consent to bill Medicaid for any billable services provided and to keep these consent forms on file at the District. A student file sampled during the audit did not have a signed parental consent form. Questioned costs: $334.66 Criteria: A signed parental consent form (M-5) must be received prior to billing Wisconsin Medicaid for school based services. All students with services billed to Medicaid should have the consent form (M-5) on file. Effect: Not having a signed form (M-5) would lead to potentially unallowable billings. Cause: The District either did not obtain parental consent to bill Medicaid or did not properly handle the consent form after it was received. The District did not review the student file to ensure compliance. Recommendation: The District should obtain parental consent to bill Medicaid for every student receiving and being billed for these services. The consent form should be obtained and filed prior to any billings being made to Medicaid. Also, the District should be reviewing the files on a regular basis to ensure compliance with this requirement. Response: We will review the District?s requirements and procedures for obtaining parental consent and make any necessary changes to ensure completeness and accuracy.
Finding #2022-004 ? Services billed that were not identified in the student?s IEP. Medical Assistance Program (Medicaid; Title XIX) (93.778) Federal Grantor ? U.S. Department of Health and Human Services Pass-through Entity ? Wisconsin Department of Health Services Condition: Covered school based services billed to Medicaid must be identified within the child?s IEP. A child?s billing sampled during the audit included nursing and transportation services. These services were not listed in the child?s IEP. Questioned costs: $654.12 Criteria: Students with covered services billed to Medicaid must have the services listed within the child?s IEP. Effect: Potentially unallowable billings arise when services are not included within the IEP of students. Cause: Nursing and transportation services were omitted from the child?s IEP, yet were billed to Medicaid. The District did not review the child?s IEP against services billed to ensure compliance. Recommendation: The District should only bill Medicaid for covered services included in IEP. The IEP should be reviewed prior to services being provided and billed to Medicaid. Also, the District should be reviewing the files on a regular basis to ensure compliance with this requirement. Response: We will review the District?s requirements and procedures for billing Medicaid and make any necessary changes to ensure completeness and accuracy.
Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the Board of Education and the District Administrator continue to monitor the transactions and the financial records of the District. We also encourage the District to continue to identify cost effective opportunities to improve the design of the internal control structure. Response: The Business Office has been working on adding more oversight to accounting functions that occur in the District by training employees in different areas and by following a schedule of monthly and annual informational reporting and approval. The Business Manager reports to the Board of Education each month on total revenues and expenditures for the year in comparison to trends from the previous year. The Board also receives detailed reports each month to review and approve all checks that were processed in the month prior. Beyond that, all payment requests in the District require two administrators to sign off on them to ensure more than one person reviews and approves the request. Payroll sends cash reconciliation statements to the Business Manager each month for review and approval and the Bookkeeper sends check summary reports to the Business Manager for approval each time a batch of checks is processed. Each member of our Business Office staff is trained in another area of the Business Office (e.g. Business Manager can process payroll, Payroll Specialist can cut checks, and our Bookkeeper can submit financial reports to DPI). However, due to the limited number of staff in our District, some accounting functions in the Business Office do not have as much segregation as recommended by our auditors. In the future, we will continue to try to segregate more duties to help alleviate the financial risk in the District.
Finding #2022-002- Material Adjustments (Prior Year Finding #2021-002) Condition: Johnson Block and Company, Inc. proposed multiple adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to report properly. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the Board of Education and the District Administrator continue to monitor the transactions and the financial records of the District. We also encourage the District to continue to identify cost effective opportunities to improve the design of the internal control structure. Response: The Business Office has been working on adding more oversight to accounting functions that occur in the District by training employees in different areas and by following a schedule of monthly and annual informational reporting and approval. The Business Manager reports to the Board of Education each month on total revenues and expenditures for the year in comparison to trends from the previous year. The Board also receives detailed reports each month to review and approve all checks that were processed in the month prior. Beyond that, all payment requests in the District require two administrators to sign off on them to ensure more than one person reviews and approves the request. Payroll sends cash reconciliation statements to the Business Manager each month for review and approval and the Bookkeeper sends check summary reports to the Business Manager for approval each time a batch of checks is processed. Each member of our Business Office staff is trained in another area of the Business Office (e.g. Business Manager can process payroll, Payroll Specialist can cut checks, and our Bookkeeper can submit financial reports to DPI). However, due to the limited number of staff in our District, some accounting functions in the Business Office do not have as much segregation as recommended by our auditors. In the future, we will continue to try to segregate more duties to help alleviate the financial risk in the District.
Finding #2022-002- Material Adjustments (Prior Year Finding #2021-002) Condition: Johnson Block and Company, Inc. proposed multiple adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to report properly. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the Board of Education and the District Administrator continue to monitor the transactions and the financial records of the District. We also encourage the District to continue to identify cost effective opportunities to improve the design of the internal control structure. Response: The Business Office has been working on adding more oversight to accounting functions that occur in the District by training employees in different areas and by following a schedule of monthly and annual informational reporting and approval. The Business Manager reports to the Board of Education each month on total revenues and expenditures for the year in comparison to trends from the previous year. The Board also receives detailed reports each month to review and approve all checks that were processed in the month prior. Beyond that, all payment requests in the District require two administrators to sign off on them to ensure more than one person reviews and approves the request. Payroll sends cash reconciliation statements to the Business Manager each month for review and approval and the Bookkeeper sends check summary reports to the Business Manager for approval each time a batch of checks is processed. Each member of our Business Office staff is trained in another area of the Business Office (e.g. Business Manager can process payroll, Payroll Specialist can cut checks, and our Bookkeeper can submit financial reports to DPI). However, due to the limited number of staff in our District, some accounting functions in the Business Office do not have as much segregation as recommended by our auditors. In the future, we will continue to try to segregate more duties to help alleviate the financial risk in the District.
Finding #2022-002- Material Adjustments (Prior Year Finding #2021-002) Condition: Johnson Block and Company, Inc. proposed multiple adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to report properly. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the Board of Education and the District Administrator continue to monitor the transactions and the financial records of the District. We also encourage the District to continue to identify cost effective opportunities to improve the design of the internal control structure. Response: The Business Office has been working on adding more oversight to accounting functions that occur in the District by training employees in different areas and by following a schedule of monthly and annual informational reporting and approval. The Business Manager reports to the Board of Education each month on total revenues and expenditures for the year in comparison to trends from the previous year. The Board also receives detailed reports each month to review and approve all checks that were processed in the month prior. Beyond that, all payment requests in the District require two administrators to sign off on them to ensure more than one person reviews and approves the request. Payroll sends cash reconciliation statements to the Business Manager each month for review and approval and the Bookkeeper sends check summary reports to the Business Manager for approval each time a batch of checks is processed. Each member of our Business Office staff is trained in another area of the Business Office (e.g. Business Manager can process payroll, Payroll Specialist can cut checks, and our Bookkeeper can submit financial reports to DPI). However, due to the limited number of staff in our District, some accounting functions in the Business Office do not have as much segregation as recommended by our auditors. In the future, we will continue to try to segregate more duties to help alleviate the financial risk in the District.
Finding #2022-003 ? Parental consent to bill Medicaid not present in student file Medical Assistance Program (Medicaid; Title XIX) (93.778) Federal Grantor ? U.S. Department of Health and Human Services Pass-through Entity ? Wisconsin Department of Health Services Condition: The Medicaid program requires parental consent to bill Medicaid for any billable services provided and to keep these consent forms on file at the District. A student file sampled during the audit did not have a signed parental consent form. Questioned costs: $334.66 Criteria: A signed parental consent form (M-5) must be received prior to billing Wisconsin Medicaid for school based services. All students with services billed to Medicaid should have the consent form (M-5) on file. Effect: Not having a signed form (M-5) would lead to potentially unallowable billings. Cause: The District either did not obtain parental consent to bill Medicaid or did not properly handle the consent form after it was received. The District did not review the student file to ensure compliance. Recommendation: The District should obtain parental consent to bill Medicaid for every student receiving and being billed for these services. The consent form should be obtained and filed prior to any billings being made to Medicaid. Also, the District should be reviewing the files on a regular basis to ensure compliance with this requirement. Response: We will review the District?s requirements and procedures for obtaining parental consent and make any necessary changes to ensure completeness and accuracy.
Finding #2022-004 ? Services billed that were not identified in the student?s IEP. Medical Assistance Program (Medicaid; Title XIX) (93.778) Federal Grantor ? U.S. Department of Health and Human Services Pass-through Entity ? Wisconsin Department of Health Services Condition: Covered school based services billed to Medicaid must be identified within the child?s IEP. A child?s billing sampled during the audit included nursing and transportation services. These services were not listed in the child?s IEP. Questioned costs: $654.12 Criteria: Students with covered services billed to Medicaid must have the services listed within the child?s IEP. Effect: Potentially unallowable billings arise when services are not included within the IEP of students. Cause: Nursing and transportation services were omitted from the child?s IEP, yet were billed to Medicaid. The District did not review the child?s IEP against services billed to ensure compliance. Recommendation: The District should only bill Medicaid for covered services included in IEP. The IEP should be reviewed prior to services being provided and billed to Medicaid. Also, the District should be reviewing the files on a regular basis to ensure compliance with this requirement. Response: We will review the District?s requirements and procedures for billing Medicaid and make any necessary changes to ensure completeness and accuracy.